In light of the escalation of the situation in the Middle East, the Consumer Rights Protection Centre (CRPC) reminds travellers of their rights. In such circumstances, changes to travel plans may occur, including price fluctuations. It is therefore particularly important to know in which cases a tour operator is entitled to amend contract terms and what rights travellers have to withdraw from the service.
The stability of the price of a package travel service is a key aspect of consumer protection. Although tour operators may increase the price in certain situations, such changes are permitted only if specific conditions are met, as set out in the contract and in Cabinet Regulation No. 380 “Regulations on the Preparation and Provision of Package Travel and Linked Travel Services, and the Rights and Obligations of Package Travel and Linked Travel Service Providers and Travellers” (hereinafter – Regulation No. 380).
This ensures a balance between the service provider’s right to respond to external economic factors and the traveller’s right to clear, predictable and fair contract terms.
When Is a Price Increase Allowed?
The price of a purchased package travel service may be increased only in specific cases. A tour operator is entitled to do so only if:
- the possibility of a price increase is clearly provided for in the contract with the traveller;
- the price increase is due to objective and external factors (e.g. significant changes in fuel or other energy prices, taxes or fees, or currency exchange rate fluctuations);
- the tour operator is able to justify the need for the surcharge and provide a clear calculation.
A price increase is not a matter of discretion—it is permitted only if all contractual and regulatory requirements are fully complied with.
Mandatory Conditions for a Lawful Price Increase
For a tour operator to be entitled to increase the price, several mandatory conditions must be met:
- The contract must include a clause on price increases, specifying the grounds listed in Paragraph 85 of Regulation No. 380 (for example, an increase in fuel costs).
- The contract must also provide for the possibility of a price reduction if costs decrease—this is a mandatory principle of symmetry.
- The contract must specify the method for calculating the price difference.
The price may be increased only if the traveller is notified no later than 20 days before the start of the trip, together with a written justification and calculation.
If such notification is not provided at least 20 days before the start of the trip, the service provider has no right to increase the price, and the consumer is entitled to:
- demand performance of the travel service at the original price, or
- withdraw from the contract and receive a refund.
If the Traveller Does Not Agree with the Price Increase
If the traveller does not agree with the proposed price increase, they have the right to:
- request a justification (the tour operator may not demand a surcharge if it cannot provide a clear calculation and justification for the cost increase);
- check the deadlines (if fewer than 20 days remain before the trip, a price increase is not allowed);
- assess the extent of the price increase:
- if the increase is up to 8%, contract termination is governed by the contract terms;
- if the increase exceeds 8%, special consumer protection rights apply;
- inform the tour operator in writing of their refusal to accept the changes.
If the price increase exceeds 8% of the total value of the package travel service, the contract must provide the traveller with the right to choose whether to accept the changes or terminate the contract without a termination fee and receive a full refund of all amounts paid.
CRPC Recommendations
CRPC calls on travellers to carefully review contract terms, and reminds tour operators of their obligation to act transparently, in good faith and in compliance with regulatory requirements. Only in this way is it possible to ensure a fair balance between the interests of consumers and service providers in these changing circumstances.